Top 3 Tips to Raise Your Damaged Credit Scores

A bad credit score affects an individual the same way as a poor cricket score and makes life a bit difficult by locking you out of the best loans, credit card offers, homes and even jobs. If you are carrying a bad credit report, it is important to repair and improve it for a better future.

The question is that how to improve a bad credit score? There are several conflicting parameters about how to raise or repair a low credit score. Finding the right person or company who can offer correct information can be like searching for a needle in the haystack. With so many things on offer these days, it’s difficult to pinpoint scammers. The good news is - for most consumers with a low credit score of 500 and even worse, there are correct and decent ways you can repair a damaged credit score easily. Just follow these steps:

Get Stablilized

Some of you are following this step, but for those who do not know this trick or not following, it can be crucial. Do not try to overpay your credit card bills every month when you have an old bill still in the collection. Stabilize your current situation. It means that every single bill needs to be paid timely/monthly. If you have overdue bills 100 days or more, work out a payment plan to pay it off. Same process goes for bills that are 30 and 60 days overdue. This trick can add a little boost to your score.

Check your credit reports

Every borrower is entitled to their credit report and checking their score as well as other details correct to their knowledge. You might want to remove all the incorrect information in case you find any. This action alone could result in your score jump. A good reflection of your credit report is the first step to get higher credit score. Keeping an eye on your credit report will help you know where you stand and how your lenders look at you.

The wonder of 50%

A huge part of your credit score depends on the amount of credit you are using from the total credit available. So if you have 100,000 Rupees in your credit card limit and you are using 90,000 of that, you've crossed the 50% mark, which does not reflect in a good manner. Here, everything above 50% is considered bad and everything below 50% is good. The percentage is a huge factor. So, if your overall debt is too high, you can improve your credit score by paying off several small credits to bring them below under the wonder of 50%.

Last but not the least

Always remember that your credit score is an important factor of your life. Keep it high and you will get better deals on loans, and credit cards. Whether you wish to apply for a personal loan, car loan, business loan, home loan, or any individual financing Clix Capital is your trustworthy NBFC (Non-Banking Financial Company) that will help you out with your financial needs and guide you into maintaining an excellent credit score.

I am Ramesh living in Delhi, working with Finance Sector as Financial Consultant and I write informative blogs about various types of Personal Loan, Home Loan, Car Loan, Investment, Credit Cards & Mutual Funds.